Bank of America/Merrill Lynch downgraded E-Commerce China Dangdang to "neutral" from "buy," setting a price target of $15 for the company. Analyst Binnie Wong said that while shares havemore than doubled since that beginning of 2013, E-Commerce China Dangdang faces more intense competition. Wong also noted that key metric for the first quarter were disappointing.
For the first quarter E-Commerce China Dangdang reported net income of $800,000. Revenue increased 30% from the year-ago quarter to $279.2 million, though analysts surveyed by Thomson Reuters expected revenue of $281.76 million for the quarter.
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TheStreet Ratings team rates E-COMMERCE CH DANGDANG -ADR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate E-COMMERCE CH DANGDANG -ADR (DANG) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: